The IPO of Avience Biomedicals, a Noida-based molecular diagnostics manufacturer, achieved 365.06 times subscription on its final day of bidding on June 22. According to Moneycontrol, investors bid for 37.06 crore equity shares in the last three days (June 18-22) against the offer size of 10.44 lakh shares via 1.92 lakh applications. The subscription was led by non-institutional investors who bid 597.6 times their allotted quota, while the retail investor portion was subscribed 401.35 times and qualified institutional buyers subscribed 196.77 times. Notably, qualified institutional buyers have not participated in the offer yet, though the company has already raised ₹8.52 crore from anchor investors at ₹208 per share.
The grey market premium (GMP) for the issue stood at 33% ahead of the final day, implying an unofficial market price of around ₹278 against the upper end of the issue band. As reported by Moneycontrol, this represents a premium of roughly ₹70 per share over the upper price band of ₹208. The strong GMP of 33% points to robust pre-listing demand and suggests investors are pricing in a healthy listing-day gain, contrasting sharply with the muted grey market activity seen in several other SME issues opening this week.
Within the net public offer, qualified institutional buyers have been allocated the largest share at 49.83%, including a sizeable anchor investor portion of 28.19% of the total issue, while retail investors have been allocated 35.08% and non-institutional investors the remaining 15.09%. According to Moneycontrol, the company has already raised ₹8.52 crore by issuing 4.09 lakh shares to four anchor investors - Sanshi Funds, Meru Investment Fund, Fortune Hands Growth Fund Scheme, and Shine Star Build Cap at ₹208 per share. The lot size has been fixed at 600 shares, requiring retail investors to commit a minimum of 1,200 shares, or ₹2,49,600, at the upper end of the price band.
The company will utilize ₹15.95 crore of IPO proceeds for setting up a new manufacturing unit in the Medical Device Park under the Yamuna Expressway Industrial Development Authority (YEIDA), Gautam Buddha Nagar, Uttar Pradesh. As reported by Moneycontrol, ₹8.25 crore will be used for working capital requirements, with the remainder allocated for general corporate purposes. The ₹30.24-crore issue is entirely a fresh issue of 14,53,800 shares, with no offer-for-sale component, meaning the entire proceeds will flow to the company. The issue will remain open until June 23, with allotment expected on June 23 and listing on the NSE SME platform slated for June 25.
The company has demonstrated remarkable financial growth and regulatory achievements. According to Moneycontrol, profit grew by more than three-fold to ₹7.2 crore in FY25 from ₹2.14 crore in the previous year, while revenue surged 88.8% to ₹45.2 crore from ₹24 crore during the same period. For the ten months ended January 2025, the company reported profit of ₹5.7 crore and revenue of ₹41.8 crore. The company has received 31 new production licenses in FY 2023-24, 32 in FY 2024-25, and 11 in FY 2025-26, positioning it as one of the few manufacturers in India to receive validation for the sickle cell test from ICMR. In FY 2021-22, the company achieved approximately tenfold growth in turnover, with turnover increasing from ₹113.30 lakhs to ₹1,014.75 lakhs year-over-year. The company has also secured WHO Good Manufacturing Practice (GMP) approval and is one of only 1,515 Zed Gold holders in India as of November 13, 2024.
